If the issuing company has only one class of share capital, a transfer from retained earnings to contributed capital equal to the market value of the shares issued is ordinarily a characteristic of: A. A bonus issue but not a share split B. Neither a bonus issue nor a share split C. Either a bonus issue or a share split D. A share split but not a bonus issue

If the issuing company has only one class of share capital, a transfer from retained earnings to contributed capital equal to the market value of the shares issued is ordinarily a characteristic of: A. A bonus issue but not a share split B. Neither a bonus issue nor a share split C. Either a bonus issue or a share split D. A share split but not a bonus issue

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

If the issuing company has only one class of share capital, a transfer from retained earnings to contributed capital equal to the market value of the shares issued is ordinarily a characteristic of:

A. A bonus issue but not a share split

B. Neither a bonus issue nor a share split

C. Either a bonus issue or a share split

D. A share split but not a bonus issue

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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